Financial Aid

Student Loans

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Students that qualify for federal student aid may borrow money through the federal student loan program to meet their college costs.

Type of Loans
Subsidized loan: A student qualifies for this loan on the basis of need. The loan will be subsidized , which means no interest will accrue, nor is any payment required, until six months after the student ceases to be at least a half-time student.

Unsubsidized loan: If a student does not qualify or qualifies only partially for a subsidized loan, all or a portion of the student's loan will be unsubsidized . This means the student is responsible for the interest on the loan from the date of disbursement. Repayment on both principal and interest will begin six months after ceasing to be at least a half-time student. All other terms are identical to the subsidized loan program.

Loan Amount
The loan amount depends on a student's budget and remaining financial need after subtracting grant assistance and other sources of aid. A student who has completed less than 30 credit hours (credits taken at OCC plus transfer credits) may qualify to borrow up to $3,500. A student who has completed 30 credit hours or more may qualify to borrow up to $4,500. If the student is a dependent student (who's parent does not wish to file for a Parent PLUS loan) they may receive an additional $2000 in unsubsidized loan. If the student is independent (or a dependent student's parent(s) were denied a PLUS loan), the student may borrow up to an additional $6,000 unsubsidized loan.

Loan Disbursements
A federal loan is disbursed in installments normally at the beginning of each term. The loan proceeds are credited to the student's account. New borrowers are required to complete entrance loan counseling and must wait 30-days from the beginning of the term before a loan can be disbursed.

Loan Lender
Ocean County College uses a College Lender List and also uses the New Jersey Higher Education Student Assistance Authority as its guarantor. However, per Federal regulations, borrowers have the right to choose his or her lender, even if that lender is not one that the school has previously used . A school may not refuse to certify a loan based on a borrower's choice of lender or guarantor.

Additional Lender information and addresses are available in the Financial Aid Office.

Master Promissory Note (MPN)
A Master Promissory Note (MPN) must be signed before the first disbursement is made. This MPN is a multi-year note and therefore need only be signed by first-time borrowers. A new borrower is a student that has never borrowed a federal student loan while attending OCC.

All borrowers will receive a Plain Language Disclosure directly from the lender that indicates the loan period and the anticipated disbursement dates and amounts. Information on canceling all or a portion of the loan(s) is included. All borrowers will also receive notification from the lender when each disbursement is released. In addition, the Financial Aid Office will send a Notification of Loan Disbursement and Opportunity to Cancel to the students Ocean Cruiser e-mail address.

Loan information, paper master promissory notes, paper entrance counseling forms are available in the Financial Aid Office. They will be mailed to you upon your request.

Apply for a Parent Loan
Parents may apply for a Federal Parent Loan for Undergraduate Students (PLUS) through our preferred lenders. To get an immediate pre-approval (or denial) select a lender and go online to file an application.

Student Loan Counseling
Entrance Counseling
All borrowers of a Federal Loan must complete entrance counseling before the proceeds of the first disbursement of the loan may be released by OCC. During entrance counseling the borrower is reminded of the seriousness of taking a loan and of the borrower's responsibilities. The terms of the student loan, the repayment obligations, and the consequences of defaulting on a loan are discussed. First-time borrowers are notified by the Financial Aid Office of the requirement to complete entrance counseling.

Complete loan entrance counseling online at: http://mapping-your-future.org

Exit Counseling
When a Federal Loan borrower graduates, withdraws, or drops below half-time status, he/she must complete exit counseling. During exit counseling the terms and conditions of the repayment of the loan are reviewed, along with debt management strategies.

Loan exit counseling online at: http://mapping-your-future.org

Terms and Conditions of Student Loans

Terms and Conditions Chart

Default
A student borrower who does not repay his/her loan may go into default. If the borrower is in default, the following may happen:

1. the lender can require you to repay the entire amount of the loan immediately,
2. the lender may also sue you to collect on the loan,
3. the lender may also notify credit bureaus of the borrower's default status, which may affect the borrower's future credit rating,
4. the Internal Revenue Service may withhold the borrower's income tax refund and apply it toward the loan, and
5. a student in default on a student loan will not qualify for future federal or state financial aid.

Loan Consolidation Options
Loan consolidation terms are available through the Federal Loan Consolidation Program, as well as other lenders. For more information, borrowers go online at: http://mapping-your-future.org

Change in Student's Enrollment Status, Name, Address, and/or Social Security Number
A student borrower must immediately notify all Stafford loan lenders if he/she:

• fails to enroll for the period for which the loan was intended
• leaves school for any reason
• attends school less than half-time
• transfers from one school to another
• graduates
• changes his/her name, address, or social security number

Typical Beginning Payments for Federal Loan Repayment Plans
Viewing examples may help in estimating how much a borrower will be expected to repay when a Federal Loan becomes due and payable. The repayment schedule for a specific student's loan(s) may be different from the example. No allowances are made for deferments or cancellations.

Loan Deferment and Cancellation

Federal Loan Deferment Summary
Under certain circumstances, borrowers can receive a deferment or forbearance on a federal loan. During a deferment, a borrower is allowed to postpone payments temporarily, and no interest accrues on a subsidized loan.

If a borrower is temporarily unable to meet the repayment schedule, but not eligible for a deferment, he/she can receive forbearance for a limited and specific period. During forbearance, payments are postponed or reduced, but interest continues to accrue on subsidized loans.

Deferments and forbearances are not automatic. Borrowers must formally request a deferment or forbearance through the procedures established by the holder of the loan, and he/she must continue making payments until notified that the deferment or forbearance has been granted.

Deferment Conditions

Federal Loan Cancellation Eligibility Summary